The East Ridge Industrial Development Board approved two new development agreements for projects in the city’s border region district, where developers can recoup their investment on approved retail projects with a portion of state sales tax under Tennessee’s Border Region Retail Tourism Development Act.
The 2012 law is intended to incentivize retail development in designated areas bordering other states with lower sales tax rates and has lured retailers such as Bass Pro Shop to East Ridge.
East Ridge also receives a portion of state sales tax from border region retail projects with development agreements, and the use of those funds is limited to economic development projects and infrastructure improvements in the border region zone.
East Ridge board approves incentives for two new developments
One of the recently approved projects is a $2.4 million commercial shopping center at 4011 Ringgold Road.
The shopping center will have three units, two of which will be commercial retail units, City Attorney Mark Litchford said at the development board’s meeting Thursday.